WAC 173-424-600

(1) WA-GREET. Carbon intensities for fuels must be calculated using:

(a) WA-GREET 3.0 (November 28, 2022) or another model that ecology determines to be equivalent or superior to WA-GREET 3.0. WA-GREET 3.0 was derived from CA-GREET 3.0 model (August 13, 2018), and is posted on ecology's website https://www.ecology.wa.gov. CA-GREET 3.0 includes contributions from the oil production greenhouse gas estimator (OPGEE2.0) model (for emissions from crude extraction) and global trade analysis project (GTAP-BIO) model together with the agro-ecological zone emissions factor (AEZ-EF) model for land use change (LUC) (December 31, 2014).

(b) If a reporting entity wishes to use a modified or different life cycle carbon intensity model, it must be approved by ecology in advance of an application under WAC 173-424-610.

(2) Ecology review of carbon intensities. Ecology will regularly review the carbon intensities used in the CFP and must consider, at a minimum, changes to:

(a) The sources of crude and associated factors that affect emissions such as flaring rates, extraction technologies, capture of fugitive emissions, and energy sources;

(b) The sources of natural gas and associated factors that affect emissions such as extraction technologies, capture of fugitive emissions, and energy sources;

(c) Fuel economy standards and energy economy ratios;

(d) Methods to calculate lifecycle greenhouse gas emissions of transportation fuels including changes in:

(i) GREET, WA-GREET, CA-GREET, or OR-GREET; or

(ii) Methods to quantify indirect land use change including CCLUB; or

(iii) Methods to quantify other indirect effects.

(3) Established carbon intensities.

(a) Regulated parties, credit generators, and aggregators must use the statewide average carbon intensities listed in Table 6 under WAC 173-424-900 for the following fuels:

(i) Clear gasoline or the gasoline blendstock of a blended gasoline fuel;

(ii) Clear diesel or the diesel blendstock of a blended diesel fuel;

(iii) Fossil CNG;

(iv) Fossil LNG; and

(v) Fossil LPG.

(b) A hydrogen supplier may apply to temporarily use the applicable CI value in Table 8 under WAC 173-424-900, or apply for a specific carbon intensity under WAC 173-424-610.

(c) For electricity suppliers:

(i) The utility-specific electricity carbon intensity is calculated annually under WAC 173-424-630 and posted on ecology's website.

(ii) Credit generators or aggregators may use a carbon intensity different from the utility-specific average under (c)(i) of this subsection if:

(A) The party generates lower carbon electricity at the same location as it is dispensed into a motor vehicle consistent with the conditions of the approved fuel pathway code under WAC 173-424-630 (4); or

(B) The utility has applied to use lookup table pathway in Table 6 to lower the carbon intensity of its electricity using renewable energy certificates (RECs) under WAC 173-424-630(5).

(4) Carbon intensities for established fuel pathways. Except as provided in subsection (3) of this section, regulated parties, credit generators, and aggregators can use a carbon intensity that CARB or OR-DEQ certified for use in the California LCFS or Oregon CFP programs provided that:

(a) The carbon intensity value for the fuel pathway is adjusted for consistency with WA-GREET 3.0 including the adjustment for fuel transportation distances and indirect land use change, as applicable. The adjusted carbon intensity for the established fuel pathway can be used after ecology has reviewed and approved it for consistency with WA-GREET; or

(b) The value matches the description of a fuel pathway. For hydrogen produced using biomethane or renewable electricity, the producer of the hydrogen must:

(i) Demonstrate to ecology that the carbon intensity value in Table 6 is appropriate for its production facility; and

(ii) Submit retirement records from an electronic tracking system recognized by ecology on an annual basis that the renewable electricity and biomethane attributes, as applicable, were not claimed in any other program except for the federal RFS and Climate Commitment Act (chapter 173-446 WAC). Any such claims under the federal RFS or the Climate Commitment Act must be made for the same use and volume of biomethane or its derivatives as it is being claimed for in the CFP, or the claim under the CFP is invalid.

(5) Primary alternative fuel pathway classifications. If it is not possible to identify an applicable carbon intensity under either subsection (3) or (4) of this section, then the regulated party, credit generator, or aggregator has the option to develop its own fuel pathway and apply for it to be certified under WAC 173-424-610. Fuel pathway applications fall into one of two tiers:

(a) Tier 1. Conventionally-produced alternative fuels of a type that have been well-evaluated for carbon intensity determinations in the California, Oregon, or Washington clean fuel programs. Tier 1 fuels include:

(i) Starch-based and sugar-based ethanol, and ethanol from corn kernel fiber cellulose;

(ii) Biodiesel produced from conventional feedstocks (plant oils, tallow, and related animal wastes and used cooking oil);

(iii) Renewable diesel, propane, naphtha, or alternative jet fuel produced from conventional feedstocks (plant oils, tallow, and related animal wastes and used cooking oil) using hydrotreatment processes;

(iv) Natural gas; and

(v) Biomethane from landfills; anaerobic digestion of dairy and swine manure or wastewater sludge; and food, vegetative, or other organic waste.

(b) Tier 2. Tier 2 includes all fuels not included in Tier 1 including, but not limited to:

(i) Cellulosic alcohols;

(ii) Biomethane from sources other than those listed as Tier 1 in (a)(v) of this subsection;

(iii) Hydrogen;

(iv) Renewable hydrocarbons other than renewable diesel produced from conventional feedstocks using hydrotreatment processes as described in (a)(iii) of this subsection;

(v) Biogenic feedstocks co-processed at a petroleum refinery;

(vi) Tier 1 fuels using innovative methods including, but not limited to, carbon capture and sequestration or a process that cannot be accurately modeled using the simplified calculators; and

(vii) Any other fuel not listed as a Tier 1 fuel.

(6) Specified source feedstocks. Except as specified in subsection (4) of this section, fuels that are produced from a specified source feedstock may be eligible for a reduced carbon intensity value when applying under WAC 173-424-610 so long as they meet all of the following requirements:

(a) Specified source feedstocks are nonprimary products of commercial or industrial processes for food, fuel, or other consumer products and include, but are not limited to:

(i) Used cooking oil, animal fats, fish oil, yellow grease, distiller's corn oil, distiller's sorghum oil, brown grease, and other fats, oils, and greases;

(ii) Forest biomass waste from nonindustrial forestland removed for the purposes of wildfire fuel reduction, to reduce the risk to public safety or infrastructure, to create defensible space, or for forest restoration; and from a treatment in which no clear cutting occurred and that was performed in compliance with all local, state, and federal rules and permits;

(iii) Organic portion of municipal solid waste that is diverted from landfill disposal;

(iv) Corn stover;

(v) Other feedstocks designated as specified-source at the time of pathway review and prior to certification.

(b) The specified source feedstocks are used in pathways for biodiesel; renewable diesel; alternative jet fuel; co-processed refinery products; biomethane supplied using book-and-claim accounting and claimed as a feedstock for CNG, LNG, L-CNG, or hydrogen produced using steam-methane reformation;

(c) Under WAC 173-424-610 (9)(d), any feedstock can be designated as a specified source feedstock if requested by a supplier using site-specific carbon intensity data or if it is specified in a pathway approval condition; and

(d) Chain-of-custody evidence must be used to demonstrate the proper characterization and accuracy of the quantity of the specified source feedstocks going into a fuel production facility or claimed as biomethane, subject to all of the following provisions:

(i) Chain-of-custody evidence must be provided to the verifier and to ecology upon request;

(ii) Joint applicants may assume responsibility for different portions of the chain-of-custody evidence, but each joint applicant must meet the requirements in (d)(i) and (iii) of this subsection to be eligible for a pathway that utilizes a specified source feedstock;

(iii) Fuel pathway applicants using specified source feedstocks must maintain either:

(A) Delivery records that show shipments of feedstock type and quantity directly from the point of origin to the fuel production facility; or

(B) Information from material balance or energy balance systems that control and record the assignment of input characteristics to output quantities at relevant points along the feedstock supply chain between the point of origin and the fuel production facility;

(e) In order to maintain the pathway, the fuel production and any joint applicant must meet the following requirements:

(i) Maintain records of the type and quantity of feedstock obtained from each supplier, including feedstock transaction records, feedstock transfer documents pursuant to (f) of this subsection, weighbridge tickets, bills of lading or other documentation for all incoming and outgoing feedstocks;

(ii) Maintain records used for material balance and energy balance calculations; and

(iii) Ensure ecology staff and verifier access to audit feedstock suppliers to demonstrate proper accounting of attributes and conformance with certified CI data; and

(f) A feedstock transfer document for specified source feedstocks must prominently state the following information:

(i) Transferor company name, address, and contact information;

(ii) Recipient company name, address, and contact information;

(iii) Type and amount of feedstock, including units; and

(iv) Transaction date.

(g) Requirements for feedstock attestation letter. Each entity in the supply chain for a specified source feedstock must maintain a specified source feedstock attestation letter. This applies to both pathways that are originally certified by ecology and those that are recertifications of pathways approved by CARB or OR-DEQ. The specified source feedstock attestation must make the following specific attestations:

(i) The specified source feedstocks have not undergone additional processing, such as drying or cleanup, except as explicitly included by the fuel producer in their lifecycle analysis and pathway carbon intensity;

(ii) All data and information supplied to the fuel producer and ecology are true and accurate in all areas including, but not limited to:

(A) Specified source feedstocks meet the applicable definitions of this chapter or as defined in the pathway conditions approved by ecology during the certification of this producer's fuel pathway application;

(B) Deliveries of the specified source feedstock(s) consist entirely of what is documented on the feedstock transfer documents and are not mixed or altered with any materials that do not meet the definition of that specified source feedstock; and

(C) The specified source feedstocks were not intentionally produced, modified, or contaminated to meet the definition; and

(iii) The signed specified source feedstock supplier attestation letter must:

(A) Be maintained by that feedstock supplier, and submitted as an electronic copy upon request by a verifier, verification body, or ecology;

(B) Be on company letterhead;

(C) Be maintained separately for each specified source feedstock;

(D) Be signed by an authorized representative employee of the specified source feedstock supplier; and

(E) Include the following attestation that has been signed and dated:

"I certify that the (insert name of specified source feedstock in question) supplied by (insert name of facility or company) meets all of the following requirements: 1) the specified source feedstock meets the definition under WAC 173-424-110, or the specified source feedstock definition included in the operating conditions of the fuel producer's pathway application this feedstock is being supplied to; 2) the specified source feedstock has not undergone additional processing, such as drying or clean-up, except as explicitly included in the pathway lifecycle analysis and carbon intensity; 3) deliveries of the specified source feedstock consist entirely of what is documented on the feedstock transfer documents and are not mixed with any other materials that do not meet the definition of specified source feedstock; and 4) the specified source feedstock was not intentionally modified or contaminated to meet this definition.

By signing this letter, (insert name of feedstock supplier) accepts responsibility for the information herein. I certify under penalty of perjury under the laws of the Washington State that I have personally examined, and am familiar with, the statements and information in this document. I certify that the statements and information are true, accurate, and complete."

(7) Book-and-claim accounting for pipeline-injected biomethane. Indirect accounting may be applied to biomethane used as transportation fuel, to produce electricity using a fuel cell for EV charging, to produce alternative jet fuel, alternative marine fuel, renewable diesel, and for hydrogen used in fuel cell vehicles. All biomethane reported using book-and-claim accounting must also meet the following traceability and documentation requirements:

(a) Temporal matching. Entities may report natural gas as biomethane within only a three-quarter time span. If a quantity of biomethane and all associated environmental attributes (including a beneficial CI) is pipeline-injected in the first calendar quarter, the quantity claimed for CFS reporting must be matched to natural gas sold in Washington as biomethane no later than the end of the third calendar quarter. After that period is over, any unmatched biomethane quantities expire for the purpose of CFS reporting.

(b) Sourcing requirements – All use cases except alternative jet fuel. Except for biomethane used for the production of alternative jet fuel as provided in this subsection, biomethane reported using book-and-claim accounting must meet the sourcing requirements specified in the timeline in (i) and (ii) below:

(i) Through December 31, 2034, biomethane injected into the common carrier pipeline in North America (and thus comingled with fossil natural gas) can be reported without regards to physical traceability.

(ii) Beginning January 1, 2035, pipeline-injected biomethane, except for biomethane used for the production of alternative jet fuel as provided in this subsection, must demonstrate compliance with one or more of the following conditions:

(A) The biomethane is produced in Washington and injected into any pipeline located in Washington, including intrastate pipelines; or

(B) The biomethane is injected directly into an interstate pipeline that flows into Washington, including the Williams Northwest pipeline and the Gas Transmission Northwest pipeline. The injection point must be upstream of or within Washington. The biomethane may also be injected into a feeder pipeline that directly connects the biomethane production facility to one of the interstate pipelines specified in this subsection; or

(C) The biomethane is injected directly into an international pipeline that flows into Washington or interconnects with a Washington pipeline via a border crossing, including the Enbridge BC pipeline or the portion of Gas Transmission Northwest pipeline network located in Canada. The injection point must be upstream of or within Washington. The biomethane may also be injected into a feeder pipeline that directly connects the biomethane production facility to one of the international pipelines specified in this subsection.

(c) Sourcing requirements - Alternative jet fuel. Through December 31, 2045, biomethane injected into the common carrier pipeline in North America (and thus comingled with fossil natural gas) can be reported as a feedstock to produce alternative jet fuel without regards to physical traceability. Beginning January 1, 2046, the biomethane must meet at least one of the conditions specified in (b)(ii)(A) through (C) of this subsection if reported under a fuel pathway associated with a project that broke ground on or after January 1, 2030. Biomethane reported under fuel pathways associated with alternative jet fuel projects that broke ground on or before December 31, 2029, are exempt from this requirement and may continue to be reported without regard to physical traceability.

(d) Documentation requirements. To substantiate the environmental attributes of pipeline-injected biomethane, the pathway application and subsequent annual fuel pathway reports for all biomethane reported using book-and-claim accounting must include the following documents:

(i) Unredacted monthly invoices showing the quantities of RNG (in MMBtu) sourced and the contracted price per unit.

(ii) Unredacted contract(s) by which the fuel pathway holder obtained the environmental attributes.

(iii) Any maps, charts, or other documents showing the initial injection point of the biomethane and the pipeline(s) used to transport the biomethane to demonstrate the biomethane meets the sourcing requirements in (b) or (c) of this subsection.

(e) A registered party reporting biomethane as a fuel or feedstock using book-and-claim accounting shall meet the recordkeeping requirements under WAC 173-424-400 (1)(k) and the reporting requirements under WAC 173-424-420.

(8) The carbon intensity value certified under WAC 173-424-610, including any margin of safety requested by the fuel producer or imposed as a condition of approving a pathway, is the maximum carbon intensity value that can be claimed for a fuel reported in the CFP. The actual operational carbon intensity of a fuel will be calculated from the most recent production data covering 24 months of the fuel production facility's operation. A fuel pathway applicant may add a conservative margin of safety, of a magnitude determined by the applicant, to increase the certified CI above the operational CI calculated based on the data submitted in the initial fuel pathway application, to account for potential process variability and diminish the risk of noncompliance with the certified CI. Registered parties shall not report fuel sales under any CFP carbon intensity unless the actual operational carbon intensity is equal to or less than the certified CI.

(9) Fuel producers labeling fuel sold in Washington with a carbon intensity under the CFP and registered entities using those labeled carbon intensities to report in the WFRS, must ensure that the fuel so labeled and reported will be found to have an actual operational lifecycle carbon intensity equal to or below its certified carbon intensity.

(10) Fuel pathways for 2023 and 2024. A registered entity that supplies a fuel to Washington state and has an active fuel pathway approved by CARB or OR-DEQ:

(a) May use the fuel pathway temporarily to participate in the CFS program until ecology approves the fuel pathway under this chapter. The fuel pathway holder may also use a CARB or DEQ approved fuel pathway temporarily for a facility that has undergone capacity expansion, provided that the fuel pathway holder demonstrates that the expected carbon intensity of the expanded capacity fuel pathway does not exceed the CARB or OR-DEQ approved CI based on the energy sources, feedstocks, process technology, product and co-products mix, etc. of the expanded production facility.

(b) Must submit the revised fuel pathway application by April 30, 2023, according to WAC 173-424-610, if the entity plans to participate in the program in 2023.

(c) Must submit the 2023 temporary annual compliance reports using the CARB or OR-DEQ approved fuel pathway, unless ecology approves the revised fuel pathway before December 31, 2023, according to WAC 173-424-430. The registered entity must submit the 2023 revised annual compliance report together with the 2024 annual compliance report using an ecology-approved fuel pathway carbon intensity.

(d) Must use an ecology-approved fuel pathway to participate in the program in the next quarter after ecology approves it.